BUSINESS

Vivo sent 50% of their turnover to China, says ED

Vivo: The Indian counterpart of Vivo, a Chinese smartphone manufacturer, sent ₹ 62,476 crore, which is nearly 50 per cent of its turnover, primarily to China, confirms the Enforcement Directorate (ED). The agency claims that to avoid paying taxes, Vivo used 23 shell companies across states to do money laundering.

The ED revealed the information after it carried out searches at 48 locations spanning across the country belonging to Vivo Mobiles India Private Limited and its 23 associated companies such as GPICPL.

In a statement, the agency confirmed, “These companies are found to have transferred huge amounts of funds to Vivo India. Further, out of the total sale proceeds of Rs 1,25,185 crores, Vivo India remitted Rs 62,476 crores almost 50 per cent of the turnover out of India, mainly to China.”

ED stated these entities are Rui Chuang Technologies Private Limited (Ahmedabad), V Dream Technology and Communication Private Ltd (Hyderabad), Regenvo Mobile Private Limited (Lucknow), Fangs Technology Private Limited (Chennai), Weiwo Communication Private Limited (Bangalore), Bubugao Communication Private Limited (Jaipur), Haicheng Mobile (India) Private Limited (New Delhi), Joinmay Mumbai Electronics Pvt Ltd (Mumbai), Yingjia Communication Private Limited (Kolkata), Jie Lian Mobile India Pvt Ltd (Indore), Vigour Mobile India Private Limited (Gurgaon), Hisoa Electronic Private Limited (Pune), Haijin Trade India Private Limited (Kochi), Rongsheng Mobile India Private Limited (Guwahati), Morefun Communication Private Limited (Patna), Aohua Mobile India Private Limited (Raipur), Pioneer Mobile Private Limited (Bhubaneswar), Unimay Electronic Private Limited (Nagpur), Junwei Electronic Private Limited (Aurangabad), Huijin Electronic India Private Limited (Ranchi), MGM Sales Private Limited (Dehradun) and Joinmay Electronics Pvt Ltd (Mumbai).

Additionally, Enforcement Directorate (ED) has blocked 119 bank accounts linked to Vivo’s India business which were holding ₹ 465 crore, ₹ 73 lakh cash and 2 kg gold bars, as part of a probe into alleged money laundering by the company.